Automation helps Singapore logistics firms weather global disruptions, manpower crunch

He added that greater supply chain visibility also enables firms to respond more quickly to disruptions and unforeseen events.

AUTOMATION BECOMING MORE ACCESSIBLE

Industry players say automation technology has advanced rapidly and is now more accessible than ever, even for smaller businesses. 

“We are quite convinced that automation is now available at scale. If you’re a small company, it’s also available in modular fashion. In many cases, there’s a positive return on investment,” said Enterprise Singapore’s (EnterpriseSG) Mr Jesse Satria Oeni. 

The statutory board’s director for logistics and mobility added that some companies have already achieved two to three times productivity gains through automation. 

But at the same time, Mr Oeni acknowledged that upfront investment costs can still be a barrier for some firms. 

“Usually, people adopt these solutions because they’re sustainable on a longer-term basis,” he said. “Where companies may need a bit of initial push is at the start of the investment, as they may not have the cashflow to undertake the capital expenditure. But there are a lot of solutions (and) financing options available.” 

Still, he stressed that businesses should not wait for major disruptions before transforming their operations. For instance, he noted that fleet operators who transitioned early to electric vehicles are now less affected by high diesel prices. 

“We (don’t) need to wait for crises to act. It’s important to focus on longer-term transformation so that we’re not caught up by the next crisis,” he said. 

For many firms, automation is increasingly seen as essential to staying competitive. 

“Automation is a tool that we have to use. If we don’t, we will die out,” said Singapore PharmaTech’s Ms Zhang. “It’s already a (competition) to see who uses automation the best … out there. The gap (is now) wider between those who can use automation and those who cannot.”